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A project has an expected risky cash flow of $600 in years 1,2 and 3 . The risk-free rate is 4 percent, the expected market

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A project has an expected risky cash flow of $600 in years 1,2 and 3 . The risk-free rate is 4 percent, the expected market rate of return is 14 percent, and the project's beta is 1.10. (A) Calculate the certainty equivalents cash flow for years 1, 2 and 3 (CEQ). (B) What is the difference between the CEQs and the PVs of the year 1, 2, 3 risky cash flows

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